Lexin(US:LX)2023-05-24 06:05Financial Data and Key Metrics Changes - Loan origination volume reached RMB60.9 billion, up 41% year-over-year [5] - Total outstanding balance increased to RMB107 billion, up 28% year-over-year [5] - Revenue was RMB2,980 million, up 74% year-over-year [5] - Net profit was RMB327 million, an increase of 302% year-over-year [5] - Net profit margin rose to 11.0% from 4.8% in the same quarter last year [6][19] Business Line Data and Key Metrics Changes - E-commerce business achieved RMB113 billion GMV, a 69% increase year-over-year [13] - Revenue from credit facilitation services was approximately RMB2.1 billion, representing a 136% increase year-over-year [22] - Revenue from tech-empowerment services was RMB368 million, a 10.9% decrease quarter-over-quarter [22] - Revenue from installment e-commerce platform services was RMB499 million, a decrease of 25.9% quarter-over-quarter but an increase of 56.6% year-over-year [22] Market Data and Key Metrics Changes - The weighted average APR stood at approximately 24%, close to 1 percentage point lower than a year ago [17] - 30-day plus delinquency rate improved to 4.57% from 4.62% in the previous quarter [18] - 90-day plus delinquency rate remained stable at 2.53% [18] Company Strategy and Development Direction - The company is focused on upgrading risk management capabilities and eliminating high-risk users [36] - Plans to differentiate customer acquisition through e-commerce and offline sales teams [37] - Continued investment in research and development, with R&D expenses reaching RMB130 million [11] - Emphasis on cost efficiency initiatives, with G&A expenses down 17% year-over-year [10][23] Management's Comments on Operating Environment and Future Outlook - Management noted a gradual recovery in consumer finance post-pandemic, with expectations for continued growth [5][15] - The company remains cautious about the macroeconomic environment and is monitoring consumption recovery closely [24][25] - Preliminary estimates for Q2 2023 loan volume are expected to reach RMB63 billion to RMB63.5 billion, representing a 28% to 29% growth year-over-year [25] Other Important Information - The company has a cash position of around RMB6.5 billion and a net equity position of RMB9 billion [24] - The application of AI technology has improved operational efficiency, particularly in telemarketing [12] Q&A Session Summary Question: What is the current recovery of credit demand and supply dynamics? - Management indicated an increase in loan volume and a rebound in overall demand attributed to post-COVID consumption needs and improved risk assessment capabilities [33][34] Question: What is the loan volume run rate in April and May? - Loan volume guidance for Q2 is RMB63 billion to RMB63.5 billion, with a minor decrease in demand observed in May [40] Question: What are the trends in asset quality? - Early indicators show stable asset quality, with improvements in the structure of new loans [41]